Hayley Kirton covered law, professional services and banking at City A.M.

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Brexit may not steal London's crown as a financial hub but it may lose some of its shine (Source: Getty)

Hayley Kirton

London's financial industry woke up this morning to a fresh warning that Brexit could cap the size of the sector in the City.

Blackrock president Rob Kapito noted that multinationals with a UK presence would now be carefully considering their options relating to how much of their business they kept in the country.

"I don't think there's any firm, any good firm, that has not already started looking at real estate in different areas outside the UK in case they have to move larger operations," Kapito told the BBC's Today programme.

Also speaking to the Today programme, Morgan Stanley president Colm Kelleher cautioned that, although London is likely to retain its standing as a financial capital, some firms will probably need to cart certain parts of their offering to elsewhere in Europe following the Brexit decision.

"I am convinced that London will retain its reputation and prestige as a global financial services centre, but clearly some size of our businesses will have to be moved out of London and into Europe with the absence of any passporting agreement," said Kelleher.

"It's very hard to ascertain what that means at the moment. I do think generally though that capital markets in Europe will shrink as a result of this."